Etoro: ‘We could still float in London but things need to change’
The UK boss of trading platform Etoro has opened up about the firm’s plans to become a public company and what the London Stock Exchange has to do to win its backing.
The London-headquartered division of the Israel-headquartered trading and investment group has been weighing up floating in London or on another international exchange for a number of months.
Daniel Moczulski previously told Morning Wire that London needs to do more if it wants Etoro to float in the capital.
Now, in a new on-camera interview for Morning Wire‘s Boardroom Uncovered series, Moczulski said: “It’s a process. Conversations are always being held. It’s well stated that Etoro wants to IPO in the next X number of years.
“In terms of how far down that line we are, there are always conversations, it’s always happening.
So many things are the basis of how the market is at the moment, what’s happening in various different territories.
“All I can really say is, kind of watch this space. My feeling is the next few years, it will become apparent.”
On whether Etoro is choosing between London and New York, the MD added: “No, it’s not a choice between any two exchanges.
“I’ll have to weigh up a number of different factors, from investors to valuation. There’s a variety of different factors. And again, we engage with everybody to see what would be best for Etoro.
Although Moczulski didn’t want to be drawn on the timing of the exact location of Etoro’s float, he did hint at what London could do to convince the group to choose it.
The MD said: “If you go to the US and ask ten US citizens ‘can you make money from capital markets?’ I’m pretty confident that all ten will say yes.
“Can you make money from capital markets if you go to a UK or European audience? I’m not as convinced you will get such a yes.
“It’s perfectly possible for an individual, a member of the public, to make money from capital markets.
“I’d like to see things like that changing just from a society, perspective.
“I’d like us to talk more about investments. I’d like [to] have a conversation about where to invest.”
Etoro confident despite financial dip
The Boardroom Uncovered interview comes after Morning Wire reported in October that a “gradual thawing” of financial markets failed to stop the UK arm of stock trading platform Etoro from taking another backward step financially during 2023.
The UK arm of the Israel-headquartered trading and investment group posted a net income of $125.7m (£95.8m) for the 12 months, down from the $147.2m (£112.2m) it reported in 2022.
The London-based arm’s latest total comes after it racked up a net income of $264.1m (£201.3m) in 2021.
Etoro’s trading commissions also fell from $131.3m (£100m) to $106m (£80.8m) in the year, having totalled $307.8m (£234.6m) in 2021.
The accounts filed with Companies House also revealed that its pre-tax profit declined from $4.4m (£3.3m) to $3.2m (£2.4m) in the year. Its total in 2021 had been $3.7m (£2.8m).
The UK arm said the drop in its net income last year was in part offset by a fall in operating expenses from $140m (£106.7m) to $124m (£94.5m) as it “continued to improve efficiencies across the business”.
The firm’s 2023 results are still ahead of its performance in 2020 when its net income totalled $41.8m (£31.8m) and its pre-tax profit stood at $2.1m (£1.6m).
Etoro said the wider group ended 2023 with over 35m registered users globally and 3m funded accounts, up five per cent year on year.
The group added that it generated total commissions of around $630m (£480.2m) in 2023 and over $100m (£76.2m) in EBITDA [earnings before interest, taxes, depreciation and amortisation].
Boardroom Uncovered
Boardroom Uncovered is Morning Wire‘s flagship on-camera interview series, featuring the top bosses of the biggest and best-known companies operating in the UK.
Previous guests have included the likes of Sir Tim Martin, the founder and chairman of pub giant Wetherspoon, Graham Bell, the CEO of B&Q, and the founder and CEO of Pensionbee, Romina Savova.
Boardroom Uncovered has also featured IKEA’s UK&I CEO, Peter Jelkeby, the CEO of the Virgin Group, Josh Bayliss, the president of Robinhood UK, Jordan Sinclair, and the CEO of Purplebricks, Sam Mitchell.
To catch up with all the previous episodes, click here.